Coordinating tax registration abroad

In recent years we have seen that an increasing number of Hungarian companies are expanding internationally. This is especially profitable for businesses, if they are able to sell products and/or provide services to foreign companies and individuals without a personal presence or office abroad. With the decrease of the Hungarian market, such companies can continue to increase their profits even in periods of recession which means getting a return on their investment already in the medium term.

At the same time, these plans are often abandoned by companies deterred by foreign tax regulations or tax registrations and tax return procedures. Their fear is partly understandable since the registration and tax return obligation, whether the expansion concerns one or several countries, can be an unpleasant administrative burden without familiarity with local rules. In certain cases, however, tax registration in the target country is mandatory, and so it may happen that a company violates the rules by not registering or puts a great amount of effort into establishing its registration and tax return filing practice and after a while gives up its presence abroad. Forvis Mazars assists Hungarian businesses in the smooth foreign registration procedure and tax return process with its international network and the coordination service provided by Forvis Mazars in Hungary.

To whom do we recommend our services?

• To those who are thinking about foreign expansion but have not dared to do so yet because they are uncertain about taxation abroad
• To those who only plan to have occasional transactions abroad but are unaware of their obligations in this respect
• To those who sell to private entities in the EU and would like to gain a competitive advantage by including a lower VAT rate in effect abroad instead of charging the 27% Hungarian rate, or to those whose volume of sales exceeds (or will exceed) the limit in effect in the given country and are therefore required to register
• To those who already have tax registration(s) abroad but think that the procedure for filing tax returns is cumbersome due to the many contact persons or they are not satisfied with the current procedure for filing tax returns
• And to all who are uncertain in the taxation issues of any of the aforementioned or similar affairs

How can we help?

• We offer one hour of free consultation and a free price quotation so that you can compare your foreseeable gains against the expectable monthly expenses.
• We participate in the planning process, cooperating with the company in order to ensure that the best structure is established in the interest of optimising tax burdens.
• We coordinate the foreign registration processes and the submission of tax returns, monitor the work of local offices and intervene in the process, if necessary.
• We provide assistance in the coordination of the tax return process of already existing foreign tax registrations and harmonize the filing processes in the various countries. If required, we optimize the already existing structure. Where necessary, we contact local tax authorities with the help of our foreign partner office.
• We assist the company in the course of tax audits in the target country, by coordinating and systematizing a comprehensive supporting documentation.
• We review tax returns filed earlier, assess the possible related risks, and make recommendations for the necessary corrections.

If you have any questions related to our coordination service, please do not hesitate to contact our colleagues directly orthrough your Forvis Mazars contact person.